In the latest trading session, Deckers (DECK) closed at $103.80, marking a +2.59% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.06%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.39%.
Shares of the maker of Ugg footwear witnessed a loss of 18.19% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.29%, and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of Deckers in its upcoming release. The company is forecasted to report an EPS of $1.57, showcasing a 1.26% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.41 billion, up 7.67% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.33 per share and revenue of $5.43 billion, indicating changes of 0% and +9.01%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Deckers. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.77% upward. Deckers presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Deckers is currently being traded at a Forward P/E ratio of 15.97. This indicates a discount in contrast to its industry's Forward P/E of 18.
We can additionally observe that DECK currently boasts a PEG ratio of 3.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Deckers Outdoor Corporation (DECK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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